Farm Policy Myths
Myth: I don’t have any livestock or equipment, so I don’t need a farm policy
The truth is, even if you don’t have livestock or a working “farm” but you’ve got a certain amount of acreage, you need a farm policy. Many homeowner policies don’t offer liability coverage for an extended amount of acreage. Meaning a potential huge chunk of your acreage isn’t covered for liability in the event of a claim. So even if you don’t have livestock, or aren’t a full/part time farmer, if you’ve got the acreage, you need the farm policy.
Myth: I have a farmowner policy, so that means everything involving my farm is covered
The truth is, even though you have a farm policy, that doesn’t mean that everything related to your farm is automatically covered. Farm equipment, such as tractors and balers, has to be scheduled on. Meaning they have to be individually added to your farm policy, and a premium paid on them. Same with farm structures like barns. Barns must also be scheduled and a premium paid on them. And with any livestock you want covered. So just because you have a farm policy, that does not mean your entire farm is covered. Check with your independent agent to see if all your implements, structures and livestock are insured.
Myth: I have cattle listed on my policy, so that means they’re covered for everything
The truth is, even though your cattle are scheduled onto your policy, that doesn’t mean they’re covered for ANYTHING that happens to them. Most policies you have to state what perils you want your livestock protected against, and pay a premium for. Perils such as lightning, shooting, etc. Your independent insurance agent can discuss with you what perils you think would fit best for your livestock
Myth: I’ve got my ATV/UTV insured on my farmowner policy, so that means it’s covered regardless of where I’m using it
The truth is, most farmowner policies that have their ATV/UTV scheduled on, means it’s only protected when it’s being used on your property. Taking the ATV off property to ride on trails, or hunt, isn’t covered. Speak with your agent to see what your ATV is covered for if it’s on your farm policy, and to see if you would benefit more to insure the ATV on its own policy.
Myth: My tractor is insured, so the loader is as well
The truth is tractors & their loaders have to be insured separately. Even if they were purchased together, tractors have their own serial numbers and loaders have their own as well. Both implements have to be scheduled on, and a premium paid for each.
Myth: I have a farm policy, so all acreage I own has liability
The truth is the acreage that is connected directly to your home is covered, as long as the amount of acreage is listed. But acreage you own that doesn’t connect to your home isn’t automatically covered. Meaning if your home is on one section of land, and you own another section of land across town, that section across town would need to be listed. Liability for additional acreage is incredibly cheap; most times it doesn’t cost any extra if it’s under a certain amount. Check with your agent to make sure all your acreage is listed and accounted for.
These are just a few common myths I’ve heard in my last seven years working in insurance. But insurance is sometimes difficult to understand, and if you’re unsure about your coverage’s, reach out to your agent and discuss your policy.
-Jordan Newcomer
Licensed Property & Casualty Insurance Agent
